India’s cotton exports are estimated to have plummeted by 36% to 9.14 million bales in the first 11 months ended June of the current marketing year, as per reports compiled by the US Department of Agriculture (USDA). The country had shipped 13.91 million bales of cotton during August-June 2011-12 marketing year. One bale contains 170 kg of cotton and the cotton marketing year runs from August to July.
The exports have however started picking up again with major trading firms busy buying at the Cotton Corporation of India auctions. Yarn export registrations for May have risen by more than 21% year-to-year basis. The yarn shipments in June are expected to have risen with the rupee devaluation boosting exports. China, Bangladesh and Vietnam continue to remain major export markets for the country.
The consumption on domestic front is expected to be 28.56 million bales this year and the local demand will continue to remain strong as mills seek to cover their position till September. There has also been a steady demand from yarn manufacturers as exporters look to take advantage of the weaker rupee by exporting at higher margins. India’s cotton production is estimated at 33.8 million bales in 2012-13 crop year (July-June), slightly lower than last year.
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